Apple Makes $1 Billion Bet On Uber’s Chinese Competitor

By Julia Love

(Reuters) – Apple stated on Thursday it has spent $1 billion in Chinese ride-hailing solution Didi Chuxing, a step that Apple Chief Executive Tim Cook said would certainly assist the firm much better comprehend the essential Chinese market.

The investment comes as Apple is attempting to renew sales in China, its second-largest market. Apple lately has actually come under pressure from Chinese regulators, with its online publication and also film solutions closed down last month, and Chef is taking a trip to the country this month.

The investment gives Apple, which has actually hired loads of automotive specialists over the previous year, a considerable stake in Uber Technologies Inc’s principal rival in China. Cook stated in a meeting that he sees opportunities for Apple and Didi Chuxing to collaborate in the future.

“We are making the financial investment for a number of strategic reasons, including a chance for more information about particular sectors of the China market,” he claimed. “Naturally, our team believe it will supply a solid return for our invested funding with time as well.”

Didi Chuxing, previously referred to as Didi Kuaidi, said in a statement that the financing from Apple was the solitary biggest investment it has actually ever before received. The business, which previously increased numerous billion bucks, dominates the ride-sharing market in China. The company claimed it completes greater than 11 million trips a day, with greater than 87 percent of the marketplace for exclusive car-hailing in China.

Financiers are excitedly viewing to see whether Apple will enter the automobile company. Apple has actually employed a wide range of automobile experts, and also the business is discovering creating a self-driving automobile, sources have told Reuters.

Cook claimed Apple stays focused on the in-car encounter with its CarPlay system that links smartphones to vehicle infotainment systems.

“& ldquo; That is what we do today in the car company, so we will certainly have to see what the future holds,” he claimed.

Although Apple’s sales in China have actually sagged amidst slowing down financial development there, Prepare worried he remains positive out there.

The bargain “mirrors our exhilaration about their expanding company … as well as our continued confidence in the long-term in China’& rsquo; s economic climate,”Chef said.

(Coverage by Julia Love; Modifying by Leslie Adler)

Find out more: http://www.huffingtonpost.com/2016/05/12/apple-didi-china-uber_n_9943268.html